CCA Request

methinks

Hello,

I work for a creditor (Boo I know) and I am currently seeing more and more requests coming come through for a copy of CCA. I have read on here numerous posts about people asking for this, recieving the details and still not happy and request the details again.
I have information from a legal person that all a creditor needs to send is a copy of the application form ( the credit agreement that you sign) a monthly statment to show current status of account and a copy of terms and conditions. Once this has been sent the account is not in default and interest will carry on being applied along with the negative effect on the credit file and any possible legal action.
People conitnue to not pay there accounts in the belief it will be written off and that no damage is being recorded on there credit file but this is not true.
Everybody is fully of aware of how a credit card works when they take it out and spend on it, so why once your either fed up of paying or simply cant, then resort to trying to get out of it by loop hole that does not exsist.
Rather than go to the trouble of all this why not just contact your creditor stating you can not make repayments and ask for help?? I know in my case im happy to help and will assist with all creditors not just the one i work for.
Also there are free debt managment companys such as CCCS or Payplan who can contact creditors on your behalf for free. While on this subject if the requesting your cca would help you not to pay your creditors surly companys like the cccs would be recommending this.
I am not simply having a go or think im above this in any way ( I too have debts) but cant understand why people who have had the documents they have requested sent, still believe its in dispute and continue to not pay.

GeorgeUK

Thanks for the input methinks.

There have been many posts i've read where customers have contacted the banks saying that they are struggling with payments and being advised that they can't do anything until they have defaulted on the payments. When this happens though, the letters saying that charges will be applied and the possibility court action start to go out.

The application form is not a credit agreement - even if it says it is covered by the Consumer Credit Act. There are certain prescribed terms that must be on the CCA for it to be a true and enforcable agreement by law. This applies to agreements signed before April 2007 as the legislation changed, but when people are faced with the very real threat of losing their home, even though they know that they should pay back any money they borrowed and would gladly do so if they could, sometimes they need to push back.

Many have asked for help from the financial institutions and been told to contact CCCS or ayplan (which we totally agree with), but are then passed on to debt collection agencies who do not take either common courtesy or their legal duty into account when dealing with people. I have read a post on here where a woman was advised to go to the supermarket to get some cardboard boxes because that's where her children will be sleeping if they didn't get their money.

Everyone has a legal right to request a copy of their credit agreement at any time on payment of the required £1 fee. If someone can argue that there shouldn't be a charging order placed on their home (before they have even gone to court for a CCJ) then that £1 is well spent in my opinion.

When people make reduced payment to the banks lower than the required minimum payment, they know it's going to affect their credit rating and we certainly advise that debts are never written off.

Morals are great to have but the cost is sometimes too high and bending them is the only option left. Some people pay a reduced amount on unenforcable debts (where all the prescribed terms are not in the CCA) while others pay nothing, but intend to pay back when they can afford it or even offer a reduced settlement. Some will say it's not enforcable so we're not paying but that is their decision - we just try to tell them what the possible options are and if you can't continue your profession if you go bankrupt, then that's a very high price to pay if the credit agreement is not enforcable and there is a way out.

stapeley

Oh and there are those DCA,s that once they have got a contact number will phone several times a day intimidating people into paying money they can not afford . Also there are many cases of once a debit card number has been given , more than the agreed amount is taken out .This action has caused great hardships . So do not come on her telling others about morals !

methinks

Thank you for the informative reply, I do understand that i am only seeing this from one side and cant begin to imagine whats its like being spoken to like the person you mention. However still feel that trying to get out of something in this way is not right and is at best an avoidance technique. If there is or is not something missing from a credit agreement, the money has been spent and should be paid back.
I do believe there is a need for education on the options available when having difficulties and should always be offered support.

methinks

In reference to your reply stapely, i was simply offering a view on a matter i have only recently come accross. I was not questioning other peoples morals nor was i discussing the way dmc go about collections so feel your reply is a bit off hand and a bit off subject.

GeorgeUK

Methinks, you are quite right - it is an avoidance technique, but with legal merit. If we are late paying a creditcards, a £35 charge may be made. This is in the T&C which may seem straightforward - according to the legislation however, it is unlawful to make any profit on a charge in this manner and the cost of processing and posting out the letter it has been shown on a whistleblower program is only a few pence and nothing like the amount they charge.

Banks have no problem in doing this even though it is unlawful (their appeal to the test case which they lost i believe is still ongoing), but if a contract is not legally binding, they argue that we should just pay up.

I realise that you did not bringup the stance of morality with your query, but when people get desperate the support from banks is very rarely there and the automated responses can leave people feeling threatened and scared of what to do next.

I too believe that if money is borrowed it should be paid back, but if the contract is not enforcable then it should be on your terms, not a banks or debt collection agency that is adding interest and charges sometimes for years even when that person is in a debt management plan set up by one of the free debt charities.

I do believe there is a need for education on the options available when having difficulties and should always be offered support.

I agree and for many, requesting a copy of the CCA only happens when they are being threatened with possible court action or are trying to remove a default from a debt that was paid years ago but still impacting their credit rating.

This site and others like it try to offer the advice/education on how to deal with debts and budgeting and support those in debt and are trying to fight their way out. Unfortunately banks don't seem to be able to offer support for those struggling and just advise them to default so they can pass them on to their inhouse collectors.

If you look at some of the threads on the forum, you will find some people's journeys of how they got into debt, what they are doing to resolve it and the struggles they are facing. Some have been a real eyeopener for me as i only recently got into "serious" debt. This may give a better answer to your question. It's not so much trying to wish the problem away, but more struggling under an avalanche and trying to reach the light.

stapeley

methinks wrote: »

In reference to your reply stapely, i was simply offering a view on a matter i have only recently come accross. I was not questioning other peoples morals nor was i discussing the way dmc go about collections so feel your reply is a bit off hand and a bit off subject.

I note that you have only just joined the forum. Well may be in a years time when you have read hundreds of threads on the tactics of the parasites in many DCA,s you can express a more informed view .

stapeley

Why does not a Orginal creditor offer the same deal to the debtor ,when selling a bad debt to a DCA ? That is 10 -15 p in the pound ?

shinyhead

When someone gets into financial trouble they enter a different world. You say that rather than doing what we're doing why not ask for help? They usually get told to sod off that's why! Or offered a loan package that both parties know don't have a hope in hell of being repaid.

You end up becoming very hard and having to put morals to one side simply because even with some creditors and definitely with debt collection agencies you are shown none.

thriftymomma

stapeley wrote: »

Why does not a Orginal creditor offer the same deal to the debtor ,when selling a bad debt to a DCA ? That is 10 -15 p in the pound ?

I've often wondered that myself.

methinks

I see all your points and i do now look at this with a diffrent point of view, something however does need to be put in place to regulate dca's/creditors on collection methods as i have read many threads where threatening and intimadating methods have been used.
Regarding the offer of 15/20p in a pound being offered to customers rather than DCA's, it is very dependent on the type of debt that is being sold on to how much it goes for. I do know though that i have the authority in my work place to accept a 40% settlement and some even lower. if you have funds like this available make an offer it will always be looked in to. ( honestly it does sometimes help if your 4/5 payments behind, although im not advising to do this dont get me wrong)